An individual non-professional investor has 2 lots of unimproved and unproductive land held for investment. Each year he has been reporting his loan interest on both lots on one Form 4952.

He hopes to sell one lot in 2014 for more than the original purchase cost.

Q. 1: Can he apply ALL of the 12/31/13 Form 4952 investment interest carryover (up to the amount of his reportable capital gain) to the sale's capital gain determination or does he have to first separate out only the amount of loan interest attributable to the one property he hopes to sell?

Q. 2: If the latter, does this mean he should have been filing a separate Form 4952 for each lot each year?